Making daily commutes in the comfort of your own car is always preferable for multiple reasons. It allows you to avoid the crowd during rush hours and save time and energy.
Buying a brand-new car would seem more appealing if you are a car enthusiast. But if you have a low budget, you may not get the best deal. In that case, buying a used car would be the best bargain for you.
Top 5 Reasons to Opt for a Second-hard Car
Here are 5 reasons why you should go for used cars:
1) Registration and Second-hand Car Insurance at a Cheaper Value
Lower the value of a product, lower is its registration and insurance charge. New vehicles come with different kinds of taxes and clauses, which makes purchases more expensive.
Car registration fees in many areas depend on the age of the car. Newer ones have a higher rate.
On the other hand, since a used car is cheaper than a new one, its insurance value is also low. You have to spend a small yearly second hand car insurance premium as the car now has a depreciated value.
Before you make a purchase, you should confirm the registration fees for that car. Buying a used car will most likely help you save a good amount on registration fees and insurance rates.
2) Saving Big Bucks on the Purchase
Buying a used car can save nearly half the car’s original price. You can get even better deals if you look in the right places. Generally, the value of a used car majorly depends on the kilometres travelled and the date of manufacture.
Therefore, you can get cheaper rates if you look in the right places. For instance, a car just a few months old could cost a lot less if the owner is rushing to sell.
If you are a new driver, you are bound to get dents and dings. So buying an expensive car at once may not be a wise option.
However, that does not require you to settle for an entry-level car. Instead, you can get a used car at a low price and save the rest of the money for your next purchase.
3) More Options to Choose from
New car models appear all year, every year. A lot of them go through updates. Each falls under a category based on its price, type and segment.
So despite hundreds of options, you can only select from a specific category depending on your budget.
Nevertheless, the used car market will always have more options for you to choose from. Within the same price range, you can pick from:
You can also jump segments and purchase a better car without worrying about the money. Therefore, instead of getting an entry-level car from the new section, you can always hunt for a slightly older and used model from high-end segments.
4) Offering a Lower Depreciation Rate
Depreciation of vehicles is inescapable. No matter how luxurious a new car is, it will lose its value with time. A new vehicle may offer benefits like free servicing, an extended warranty or a lower maintenance charge, but it cannot avoid depreciation.
Especially with better models and upgrades launching every day, the value of a new car has a low shelf life. When you buy a new car, it starts depreciating the same day, and its value cuts to half within only a few months.
Depreciation is not an issue with used cars. They depreciate at a much lower rate since you are buying them second-hand. Also, because used cars cost a lot less, their depreciation rate is the last thing you need to worry about.
5) Certified Purchase with Warranty
There is a general belief that buying a used car is not a smart choice as it usually does not come with a warranty. However, that is not always the case.
If an assurance issue is stopping you from purchasing a used car, you can buy a certified used car through a CPO (Certified Pre-Owned) program. Many car dealerships across India offer these programs on their vehicles.
The Certified Pre-Owned program is not certified by the dealership but directly by the manufacturer. Therefore, CPO program offers you better perks like extended warranty, roadside assistance, etc.
Apart from this, many car dealerships carry their own warranty. So before making a purchase, you can weigh out the options and select from the best.
Purchasing an old car may seem unattractive when you are not fully informed. On the other hand, a new one seems like an investment with high value. However, you should remember that a new car will lose its original value the moment you drive it off the showroom.
Therefore, you should explore your options instead of clinging to old ideas.
Buying a used car has its drawbacks in terms of financing, coverage, mileage, etc. But if it fits your needs, you can save a substantial amount and get a car that suits you best.